The following information for Stock A, Stock B and Stock C are given:

State of Economy

Probability of State

Stock A Return

Stock B Return

Boom

0.10

0.30

0.20

Good

0.45

0.20

0.10

Poor

0.45

-0.25

-0.06

Variance(Stock C)=0.008

Covariance(Stock A, Stock C)=0.020

Covariance(Stock B, Stock C)=0.007

If you form a portfolio and invest 25% of your money into Stock A, 35% into Stock B and, 40% of it into Stock C, what will be the standard deviation of the portfolio? (Answer is rounded)

Your answer:

0.136

0.169

0.117

0.184

0.207